No sin tax reforms, no investments – BAT

MANILA, Philippines – The chief of British American Tobacco’s (BAT) Philippine unit is dangling a 5-year $200 million investment to pressure the legislators to pass the long-awaited sin tax reform system.

“We will not pour the money in until excise reform is done. it’s contingent upon the excise reform,” BAT Philippines general manager James Lafferty said in a press briefing on Thursday, July 12.

“We’re committed to invest in the Philippines. We have announced the plan of minimum of $200 million over 5 years,” he added.

On June 6, the House of Representatives passed a reform bill on the most crucial element that makes “sin” products–tobacco and alcohol–affordable.  It has been 15 years since a sin tax bill made it through the committee meetings and finally voted on by lawmakers.

The current 4-tiered sin tax system favors local brands and slaps imported ones like those sold by BAT higher tax rates. This unfavorable tax structure has led BAT leave the Philippines in 2008.  

Lafferty stressed again that they are supporting the sin tax reforms to “level the playing field.”   

He said BAT has been scouting for locations or factories for a possible manufacturing operations.

“I think it will be very premature for me to start talking about locations or factories and getting  various governors excited. They know we’re visiting. They know i have teams looking at sites. Those governors are very aware…Nothing’s gonna be announced until excise reform is done,” he said.

Another multinational Philip Morris did not support the reform bill since it has forged a joint venture with Fortune Tobacco, which the current system favors. Philip Morris also has manufacturing operations in Batangas and Subic. – Rappler.com

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